Trailing stop implies a number of points which will be used by your broker for shifting your stop order alongside with the market trend.
For instance, if you have placed an order by N number of points:
To make maximum profit from employing trailing stop, you should observe the following rules:
The second rule is of primary importance. Yet a trader is recommended to apply both of them.
Unlike stop loss, trailing stop implies an open position and is executed in the Client Terminal, not on the server. Consequently, if a trader switches his/her computer off, trailing stop ceases to function. When the terminal is switched off, there is only a stop signal, set by the trailing stop order, possible to go off.
Trailing stop order is widely used on retail Forex and other exchanging and over-the-counter markets.
1.MetaTrader will not produce any actions until the position gains N points of profit. Then MetaTrader will set a stop order at the distance equal to N number of points from the current price.
2.When MetaTrader receives a quotation at which the distance between the current price and the placed stop order exceeds N amount of points, it directs a command to alter the stop order for a distance of N points from the present price. Thus, your stop order approaches the current price by N points.
1.Stop order is a maximum amount of money you are ready to lose for one go of your strategy.
2.You can place a stop order only to the point where the trend takes a direction unprofitable to you.
For instance, if you have placed an order by N number of points:
To make maximum profit from employing trailing stop, you should observe the following rules:
The second rule is of primary importance. Yet a trader is recommended to apply both of them.
Unlike stop loss, trailing stop implies an open position and is executed in the Client Terminal, not on the server. Consequently, if a trader switches his/her computer off, trailing stop ceases to function. When the terminal is switched off, there is only a stop signal, set by the trailing stop order, possible to go off.
Trailing stop order is widely used on retail Forex and other exchanging and over-the-counter markets.
1.MetaTrader will not produce any actions until the position gains N points of profit. Then MetaTrader will set a stop order at the distance equal to N number of points from the current price.
2.When MetaTrader receives a quotation at which the distance between the current price and the placed stop order exceeds N amount of points, it directs a command to alter the stop order for a distance of N points from the present price. Thus, your stop order approaches the current price by N points.
1.Stop order is a maximum amount of money you are ready to lose for one go of your strategy.
2.You can place a stop order only to the point where the trend takes a direction unprofitable to you.
